Lendy investors are calling for the arrest of former directors Liam Brooke and Tim Gordon, after the administrator revealed they had siphoned investors’ funds into offshore companies.
On 19 June 2020, administrator RSM released a 35-page report detailing the state of the collapsed peer-topeer lender’s loanbook and the result of their investigations.
It was revealed that £6.8m was paid to entities registered in the Marshall Islands, with RSM stating that “that these payments were ultimately for the benefit of Liam Brooke and Tim Gordon.”
Members of the Lendy Action Group (LAG) have suggested that these offshore payments were funded by investor deposits, and therefore amounted to fraud. They have called for the former directors to be arrested and held accountable for their role in the platform’s collapse.
Brooke and Gordon had their assets frozen last month and RSM said that it had commenced proceedings against the former directors and two companies associated with them. RSM also said that it was contemplating additional legal actions, relating to a third-party guarantee against a loan as well as negligence on the part of a professional adviser.
More than 10,000 retail investors were left out of pocket when Lendy went into administration in May 2019. At the time Lendy’s loanbook was worth approximately £152m. To date, just under £17m has been recovered.